Consumer Appliances sales in Middle East and Africa are set for strong growth
Despite being the second most populated region after Asia Pacific, Middle East and Africa (MEA) accounts for a very marginal share of global consumer appliance sales, in both volume and value terms. However, the region anticipates dynamic growth over 2014-2019 period.
Highly diverse markets with strong income inequality
As a region, MEA has the lowest disposable income per household, but some of its markets rank among the top 10 richest globally. In addition, the high income inequality exhibited in each market gives scope for growth in both, economy and premium products.
Disposable income growth plus low possession rates equals appliances growth
Euromonitor International forecasts rapid growth in disposable income over the 2014-2019 period; this, coupled with very low consumer appliance possession rates, will be key in driving growth.
Currently the markets have no clear segmentation or sophistication, therefore the bulk of sales are liable to be economy products to first-time purchasers. However, due to a growing population of very high income earners, premiumisation is growing trend and innovation will play a key role in consumer choices.
Energy efficiency, a growing trend common to all
With prices of energy increasing in most markets and governments looking to reduce subsidies as well as new regulations on energy savings for appliances, energy-efficient appliances are increasingly sought after in all markets in MEA.
The United Arab Emirates will drive growth in the region
The United Arab Emirates is poised to be the fastest growing market in both major and small appliances in volume terms, driven by a strong real estate market and a growing expat community.
Middle East and Africa in the world context
Middle East and Africa will thrive in volume but holds back in value
Understanding the Middle East and African Consumer
Growing disposable income, key driver of growth for appliances...
...but growth is also triggered by low possession rates
Highly disparate region with different levels of income
Income inequality is striking in MEA
How does the wealthiest 10% of the population spend
Larger households still prominent in MEA, but are declining
Middle East and Africa is the youngest region
MEA, the lowest spenders on consumer appliances...
...but premiumisation is still a growing trend
MEA spends most on refrigeration appliances
Fridge freezers are most popular, but preferred formats vary
Expensive air conditioners take largest share of expenditure
How does the MEA consumer shop for appliances?
MEA consumers still highly attached to traditional channels
Internet retailing fails to take off in major appliances
E-commerce of smaller ticket items is a growing preference
MEA: Dynamic growth in consumer appliances in 2014
MEA, second fastest growing region in consumer appliances
United Arab Emirates leads growth in major and small appliances
Energy efficiency and consumer confidence boost sales
Structural problems and political and social turmoil affect purchases
United Arab Emirates drives growth in all major appliances categories
United Arab Emirates also leads most small appliance categories
Egypt is the largest but also the most troubled market in MEA
MEA offers good scope for growth in small appliances
Low possession rates key in defining sales in MEA
Innovation pays off in MEA boosted by more developed markets
Major appliances led by multinational players
LG, leader in the region in major appliances
Multinational players also lead in small appliances
No local players among top 10 in small appliances
Preferred brands in Middle East and Africa
United Arab Emirates: Hot spot for major appliances over 2014-2019
What will drive growth and why is this different from the past?
Large cooking appliances will show strongest gains
United Arab Emirates a tough competitive environment
Expat community drives replacement cycles down
Men are also a good target for personal care appliances in MEA
Hair care appliances grow buoyantly in volume and value
Men in emerging markets care more for personal care products
Cost is key when men are buying new personal care products
MEA: Fastest growing region in major appliances over 2014-2019
Small appliances also poised for strong growth
Good prospects for UAE in volume and value in major appliances
United Arab Emirates leads volume growth but South Africa leads value
Markets to watch
Major appliances: Categories to watch
Small appliances: Categories to watch
What lies ahead?